Quantchabot has detected a new Bear Call Spread trade opportunity for BURLINGTON STORES INC (BURL) for the 2-May-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
BURL was recently trading at $225.38 and has an implied volatility of 41.85% for this period. Based on an analysis of the options available for BURL expiring on 2-May-2025, there is a 34.18% likelihood that the underlying will close within the analyzed range of $194.04-$226.78 at expiration. In this scenario, the average linear return for the trade would be 47.55%.
Big -7.35% Change: After closing the last trading session at $243.25, BURLINGTON STORES INC opened today at $242.16 and has reached a low of $224.81.
Trade approach: A movement as big as -7.35% is a significantly bearish indicator, so this trade is designed to be profitable if BURL maintains its current direction and does not revert back to pricing on the bullish side of $225.38 on 2-May-2025. If possible, the trade has been padded such that slight movement against the trade would still return a profit.
Upside potential: Using this bearish strategy, the trade would be profitable if BURLINGTON STORES INC closes at or below $227.00 on 2-May-2025. Based on our risk-neutral analysis, there is a 50.26% likelihood of this return.
Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.
To analyze this trade in depth, please visit the Quantcha Options Search Engine.
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